The survey was conducted by MarketIntello in 2016 to explore consumer's preferences in buying and using coffee products.

1. Consumer Behavior Survey
COFFEE MARKET

2. Contents
Industry overview
Survey results
Executive summary
General information about
the survey
2

3. EXECUTIVE SUMMARY
[1] Brand awareness
 Trung Nguyên is the brand with the highest level of brand recall (82.1%)
 High proportions of respondents replied that they have consumed Trung Nguyên
(98.1%), Nescafe (87.8%) and Vinacafe (76.3%)
[2] Customer satisfaction
 Trung Nguyên has the highest proportion of satisfied customers, followed by
Nescafe

4. [3] Consuming habits
 Common average consumption frequency is one cup per day (45.7%)
 Coffee with added sugar, milk is more common used than black coffee
 Respondents over 55 years old consume black coffee more often than
younger respondents
 Roasted coffee powder is more common (90.2%) than roasted coffee beans
[4] Factors influencing customers’ buying decisions
 Brand, habits and hobbies and product quality mainly influence customers’
buying decisions
 Women are mainly influenced by product quality (64.1%) and brand (53.1%)
 Men are mainly influenced by habits and hobbies (67.9%)
EXECUTIVE SUMMARY
4

5. [5] Brand loyalty
When a shopping location runs out of the regularly consumed products, 30.9% of
Nescafe consumers will switch to other products. The figure for Vinacafe is 20%
and the figure for Trung Nguyên is the lowest, 16.8%
[6] Channels to access product information
 Grocery stores are the most common product channel, the second most common
channel is supermarkets
 Distance and location and reputation mainly affect customers’ shopping location
choices (78.8% and 72.4%)
 TV and Word of mouth are the most common channels to access product
information
EXECUTIVE SUMMARY
5

6. Contents
Industry overview
Survey results
Executive summary
General information
about the survey
6

7. COFFEE INDUSTRY OVERVIEW
Season 2015/2016
- Growing area increases by 0.2%
compared to the season 2014/2015
- Production output increases by 6.93%
compared to the season 2014/2015
Source: U.S. Department of Agriculture (USDA) and International Coffee Organization (ICO)
Unit: thousand tons
1560 1590 1790 1644 1758
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Coffee production output
increases by 3.03% on
average seasonally over
the period 2011-2016
7

8. Source: U.S. Department of Agriculture (USDA) and International Coffee Organization (ICO)
In 2015:
Domestic coffee consumption: 156.000 tons
In which:
- Roasted coffee: accounts for 2/3
- Instant coffee: accounts for relatively
1/3 of total domestic consumption
Domestic coffee consumption increases by 11.75% on average over the period
2011-2016
100 109,5
120,5 133 156
2011/2012 2012/2013 2013/2014 2014/2015 2015/2016
Unit: thousand tons
COFFEE INDUSTRY OVERVIEW
8

9. Contents
Industry overview
Survey results
Executive summary
General information
about the survey
9

10. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
10

11. BRAND AWARENESS
Brand
recall (%) 82.1 34.0 20.5 1.9 2.6 0.0
Brand
recognition (%) 100 94.2 91.9 42.5 46.7 43.6
BRAND AWARENESS AND CUSTOMER SATISFACTION
Trung Nguyên has
the highest level of
brand awareness
11

12. BRAND AWARENESS – BY INCOME
Unit: %
BRAND AWARENESS AND CUSTOMER SATISFACTION
Higher
income
respondents
recognize
better
Birdy
Highlands
MacCoffee
Brands
Under
10 mn
VND
From 10 to
under 20 mn
VND
20 mn VND
and higher
Trung Nguyên 100 100 100
Nescafe 97.4 96.1 94.6
Vinacafe 92.3 92.1 97.3
Highlands 28.2 43.4 54.1
Birdy 33.3 47.4 62.2
MacCoffee 23.1 47.4 56.7
12

13. BRAND POPULARITY
98.1%
87.8%
76.3%
24.4% 26.3% 21.2%
Trung
Nguyên
Nescafe Vinacafe Highlands Birdy MacCoffee
BRAND AWARENESS AND CUSTOMER SATISFACTION
Trung Nguyên
Nescafe
Vinacafe
are the most
popular brands
13

14. CURRENT CONSUMPTION
Trung Nguyên has the highest proportion of consumers using products in the last month, 60.9%
0.6%
4.5%
5.8%
16.0%
33.3%
60.9%
0 10 20 30 40 50 60 70
BRAND AWARENESS AND CUSTOMER SATISFACTION
14

15. CONSUMER SATISFATION
The highest proportion of satisfied consumers
1. Trung Nguyên: 78.3%
2. Nescafe: 55.6%
BRAND AWARENESS AND CUSTOMER SATISFACTION
78,3
55,6
47,4
45,9
24,4
29,0
20,4
36,1
41,2
48,6
58,5
64,5
1,3
8,3
11,4
5,5
17,1
6,5
0% 20% 40% 60% 80% 100%
Trung Nguyên
Nescafe
Vinacafe
Highlands
Birdy
MacCoffee
Satisfied Neutral Dissatisfied
15

16. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
16

17. COFFEE TYPES COMMONLY CONSUMED IN HOUSEHOLDS
Instant coffee is consumed by most of the households, 98.1%
98.1%
39.1%
19.2%
Cà phê hòa tan Cà phê rang xay Cà phê uống liềnInstant coffee Roasted coffee Ready-to-drink
coffee
CONSUMING HABITS
17

18. CONSUMING HABITS
Common average consuming frequency is one cup per day (45.7%)
Most of the respondents consume coffee with added sugar, milk (83.1%)
29.3%
45.7%
25.0%
Mỗi ngày 2 cốc hoặc
nhiều hơn
Mỗi ngày 1 cốc Mỗi tuần vài cốcTwo cups per
day or more
One cup per
day
Several cups
per week
CONSUMING HABITS
Milk
coffee
83.1%
Black
coffee
16.9%
18

19. CONSUMING HABITS
93,5
84,8 87,5
64,5
6,5
15,2 12,5
35,5
0%
20%
40%
60%
80%
100%
<=30 years
old
31-40
years old
41-55
years old
>55 years
old
71,4
85,8
28,6
14,2
0% 20% 40% 60% 80% 100%
Milk coffee Black coffee
Respondents over 55 years old consume
black coffee more than younger respondents do
Almost women consume milk coffee
CONSUMING HABITS
19

20. CONSUMING HABITS
Instant coffee
Almost respondents consume instant coffee with
added sugar, milk (92.1%)
CONSUMING HABITS
Black
coffee
7.9%
With added
sugar, milk
92.1%
Powder,
90.2%
Coffee
bean,
9.8%
Roasted coffee
Almost respondents consume
roasted coffee powder (90.2%)
20

21. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
21

22. FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
22
Packaging, design
5.8%
Popularity
9.6%
Brand
51.9%
Habits and hobbies
55.8%
Product quality
64.1%
Price
21.2%
Pervasiveness of
counterfeited products
8.3%
Easy to access
3.2%
Promotions
2.2%
Size, capacity
5.1%
FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
22

23. FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS – BY GENDER
67,9
64,1
53,9
0
10
20
30
40
50
60
70
80
%
Nam Nữ
Product
quality
Brand Easy to
access
Origin Price PopularityPervasiveness
of counterfeited
products
Size,
capacity
Packagin
g, design
Habits
and
hobbies
Promotions
Male Female
Women are influenced mainly by brand
Men are mainly influenced by habits and hobbies
FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
23

24. FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS - BY INCOME
Factors Under 10
mn VND (%)
From 10 to under 20
mn VND (%)
20 mn VND
and higher (%)
Product quality 53.8 67.1 70.3
Habits and hobbies 53.8 57.9 54.1
Brand 41.0 53.9 62.2
Price 30.8 17.1 21.6
Origin 28.2 34.2 27.0
Pervasiveness of counterfeited
product 10.3 5.3 8.1
Popularity 10.3 9.2 10.8
Access to product 7.7 1.3 0.0
Packaging, design 5.1 6.6 5.4
Size, capacity 2.6 6.6 5.4
Promotions 2.6 0.0 8.1
FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
24

25. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
25

26. BRAND LOYALTY
Given bad news about the regularly
consumed product:
50.3% of respondents verify information
 3.9% of respondents continue purchasing
Stop
purchasing
45.8%Verify
informatio
n 50.3%
Continue
purchasing
3.9%
BRAND LOYALTY
26

27. BRAND LOYALTY
In case a shopping location runs out of the
regularly consumed product:
 54.8% of respondents buy at other locations
 21.9% of respondents will switch to other
products
Switch to other
products 21.9%
Wait until the
products are
available 23.2%
Buy at other
locations
54.8%
BRAND LOYALTY
27

28. BRAND LOYALTY
16,8
20
30,8
56,8
48
51,9
26,4
32
17,3
0% 20% 40% 60% 80% 100%
Lựa chọn sản phẩm thay thế khác
Mua nơi khác
Chờ đến khi có sản phẩm sẽ mua
In case a shopping location runs out of the regularly consumed brand:
 Trung Nguyên customers are the most loyal compared to other brands’ customers
Nescafe consumers switch to other brands the most often compared to other
brands’ customers
Switch to another brand
Buy at other locations
Wait until the products are available
BRAND LOYALTY
28

29. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
29

30. SHOPPING LOCATIONS
Main shopping locations are grocery stores (52.5%) and supermarkets (48.1%)
SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES
30
48,1
23,7
2,5
52,5
0,6
94,9
0%
20%
40%
60%
80%
100%
Super markets Convenience
stores
Markets Grocery stores Online purchasing
Ussally Sometimes Seldomly Never

31. FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES
78.8% Distance and location
Reputation
21.8% Price
12.8% Promotions
44.2% Products variety
9% Means of payment
6.4% Delivery service
72.4%
SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’ SHOPPING LOCATION CHOICES
31

32. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’
SHOPPING LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
32

33. CHANNELS TO ACCESS PRODUCT INFORMATION
Tivi, đài
93%
Người thân, bạn bè
62%
Internet
52.6%
Salesmen
36.3%
Newspapers, magazines
35.8%
Leaflets, posters
22.9%
Advertisement on Buses
22.4%
Banners in public
18.4%
Forums
11.4%
Cultural, musical
event sponsorship
18.9%
TV and radio
90.4%
Relatives, friends
66%
Advertisement in
cinemas
12.9%
TV and radio are the most common channels to access product information, 90.4%
Accessing information through word of mouth is relatively common, 66%
CHANNELS TO ACCESS PRODUCT INFORMATION
33

34. CHANNELS TO ACCESS PRODUCT INFORMATION – BY AGE
Channels
<=30
years old
31-40
years old
41-55
years old
Over 55
years old
TV, radio 82.9 91.7 97.6 87.5
Internet 74.3 70.8 34.1 25.0
Relatives, friends 57.1 52.1 85.4 71.9
Salesmen 40.0 20.8 45.0 50.0
Banner in public 31.4 8.3 39.0 6.3
Advertisement on buses 22.9 12.5 41.5 15.6
Newspapers, magazines 20.0 45.8 51.2 25.0
Advertisement in Cinemas 20.0 4.2 12.2 3.2
Leaflets, posters 17.1 18.8 46.3 18.8
Cultural, musical event sponsorship 14.3 6.3 22.0 15.6
Forums 8.6 6.3 22.0 9.4
CHANNELS TO ACCESS PRODUCT INFORMATION
Unit: %
34

35. SURVEY RESULTS
• BRAND AWARENESS AND CUSTOMER SATISFACTION
• CONSUMING HABITS
• FACTORS INFLUENCING CUSTOMERS’ BUYING DECISIONS
• BRAND LOYALTY
• SHOPPING LOCATIONS AND FACTORS INFLUENCING CUSTOMERS’ SHOPPING
LOCATION CHOICES
• CHANNELS TO ACCESS PRODUCT INFORMATION
• PROMOTION FORMS
35

36. PREFERED PROMOTION FORMS – BY GENDER
“Bonus offers” is the most preferred promotion form, the
second preferred promotion is “Price discounts”
32.0
20.0
28.0
8.0
12.0
41.1
21.4
27.7
2.7
7.1
Tặng sản phẩm Tặng quà là sản phẩm khác Giảm giá sản phẩm Rút thăm trúng thưởng Tặng phiếu mua hàng
Nam
Nữ
Bonus offers Promotional gifts Price discounts Lucky draw Vouchers
Male
Female
PROMOTION FORMS
36

37. PREFERED PROMOTION FORMS – BY AGE
Promotion forms
<=30
years old
31-40
years old
41-55
years old
Over 55
years old
Bonus offers 29.4 34.8 55.5 38.1
Promotional gifts 35.3 17.4 13.9 19.0
Price discounts 32.4 30.4 19.4 28.6
Lucky draw 0 6.5 0 9.5
Vouchers 2.9 10.9 11.1 4.8
Respondents over 40 years old prefer bonus offers
Young respondents prefer Promotional gifts and Price discounts
Unit: %
PROMOTION FORMS
37

38. Contents
Industry overview
Survey results
Executive summary
General information
about the survey
38

39. GENERAL INFORMATION ABOUT THE SURVEY
 Study sites: Hanoi
 Survey period: July 2016
 Sample size: 156 households
 Sampling method: random sampling
 Survey method: face to face interviews
39

40. GENERAL INFORMATION ABOUT RESPONDENTS
30,8
20,5 19,9
13,5
10,3
3,2 1,9
Occupations
3,3
22,4
50
21,1
3,3
Housewives,
retirees
Officers Business-
men
Unskilled,
Freelance
workers
Service
staffs
salesmen
Manu-
facturers
Managers
<5 mn VND Form 5 to 10
mn VND
From 10 to
20 mn VND
From 20 to
40 mn VND
>= 40 mn
VND
Household monthly income
16-30
years old
22.4%
31-40
years old
30.8%
41-50
years old
16.7%
51-60
years old
18,.%
Over 60
years old
11.5%
Age
40

41. 41
CONTACT
HEAD OFFICE - Hanoi
Suite 305-307, 12 Trang Thi
Street
Hoan Kiem District, Hanoi
Tel: (+84)04-39351419
Fax: (+84)04-39351418
BRANCH OFFICE – Ho Chi Minh City
15th Floor, Unit D1502, The Manor
Officetel, 91 Nguyen Huu Canh Street,
Binh Thanh District, Ho Chi Minh City
Tel : (84-8) 3507 0622
Website: www.marketintello.com
Email: info@marketintello.com

42. MARKETINTELLO | INTRODUCTION
42
DEPOCEN was founded in 2005 as an
independent research organization, and
has gained its reputation among the
development and policy research and
consultancy community with its wide range
of research into socio-economic issues,
sector specifics, macro-economic policies,
business and investment environments,
trade liberalization, governance, and the
public sector.
DEPOCEN MARKETINTELLO
MarketIntello is headquartered in Hanoi and has a branch in Ho Chi Minh City. We
offer comprehensive market research packages on a national scale. MarketIntello
is striving to become one of the leading research and consulting firms in Vietnam
with the highest standard of market research services.
Market research service
MarketIntello was founded in 2015 as an initiative of DEPOCEN in response to
the increasing requests for market studies and research from corporate
clients. Strongly backed by DEPOCEN, the firm has a research team with full
capacity of providing survey, comprehensive and intelligent information,
analytic solutions, and industry research for both domestic and international
clients

43. MARKETINTELLO | VISION AND MISSION
Mission
Vision
A leading research and consultancy firm that excels on rigorous
scientific disciplines, advanced analytical techniques, and real-time
data and information to serve clients
To provide market insights and credible solutions
through market research and consultancy
43

44. MARKETINTELLO | SERVICES AND CLIENTS
Periodic reports
*Please access website www.marketintello.com for new released reports
44

45. MARKETINTELLO|SERVICES AND CLIENTS
Clients
45